News · CoinDesk
Aave rolls out binding Arbitrum vote to move $71 million in disputed ETH
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DeFi lender Aave and other stakeholders impacted by last month's Kelp DAO hack have launched a binding Arbitrum governance vote to transfer $71 million in disputed ether into an Aave LLC-controlled address.
Key facts
- DeFi lender Aave and other stakeholders impacted by last month's Kelp DAO hack have launched a binding Arbitrum governance vote to transfer $71 million in disputed ether into an Aave LLC-controlled
- If approved, the proposal would move 30,765 ETH from the wallet where Arbitrum’s Security Council immobilized the funds to an Aave LLC-controlled address, as required by the court’s order
- A Constitutional Arbitrum Improvement Proposal, or AIP, is the DAO’s formal on-chain governance mechanism for approving binding protocol actions
- The legal fight over the frozen assets took an unusual turn after blockchain forensics firms widely attributed the exploit to North Korea’s Lazarus Group
Summary
The amended Constitutional Arbitrum Improvement Proposal would move 30,765 ETH from an Arbitrum Security Council wallet to an Aave-controlled address in compliance with a recent court order tied to North Korean terrorism claims. The case pits DeFi users against U.S. terrorism judgment creditors, who argue the funds are North Korean property that could satisfy $877 million in unpaid awards, with voting on the proposal set to begin May 15. A Constitutional Arbitrum Improvement Proposal, or AIP, is the DAO’s formal on-chain governance mechanism for approving binding protocol actions.